colozus23
Member
Fundamental Analysis pertaining to Economic Events
To some extent, Economic events tend to move markets. Both “Buy” and “Sell” side cares on how and when the market will move to make their investment decisions.
In THEORY, information should be available to all market participants “at the same time”. But for the sake of knowledge, let’s assume that the all market participants receive all information real time.
Please take note that Economic Theories don’t move the market by themselves. Some traders and speculators use this real time information to formulate investment strategies, time their trades and use “Market Volatility” to make bets.
Classification of Economic Events
1. Economic News
- Tends to be news based and more SUBJECTIVE
- Example of these are Central Bank Governor Speeches and Economic Press Conference
2. Economic Indicators
- OBJECTIVE and generally have some numerical presentation
- Example are GDP, Inflation and Employment Data
Remember that Fundamental Analysis is one of the 3 types of analysis (Technical and Sentiment are the other two). These doesn’t equate that if you know Fundamental Analysis alone, you’re already good with the market.
These aren’t always accurate. We also need to take into consideration that there are other events in the world which drive the prices such as;
- Other big news (Geopolitical Tensions, Trade Wars, Terrorism)
- Conflicting News/Data
- Industry News
- Security Specific News
FX and Fixed Income Markets have a tendency to react more quickly to economic News. Equity is dependent of companies and specific industry. Commodity Markets are highly dependent on geopolitical and other events.
In the end, there are so many ways to earn in the Financial Market. The only thing that we need to do is to find where we can excel and master that craft.
Download this PDF file about Fundamental Analysis so you will learn about more about FX economics and how the market moves.. GOOD LUCK!!
To some extent, Economic events tend to move markets. Both “Buy” and “Sell” side cares on how and when the market will move to make their investment decisions.
In THEORY, information should be available to all market participants “at the same time”. But for the sake of knowledge, let’s assume that the all market participants receive all information real time.
Please take note that Economic Theories don’t move the market by themselves. Some traders and speculators use this real time information to formulate investment strategies, time their trades and use “Market Volatility” to make bets.
Classification of Economic Events
1. Economic News
- Tends to be news based and more SUBJECTIVE
- Example of these are Central Bank Governor Speeches and Economic Press Conference
2. Economic Indicators
- OBJECTIVE and generally have some numerical presentation
- Example are GDP, Inflation and Employment Data
Remember that Fundamental Analysis is one of the 3 types of analysis (Technical and Sentiment are the other two). These doesn’t equate that if you know Fundamental Analysis alone, you’re already good with the market.
These aren’t always accurate. We also need to take into consideration that there are other events in the world which drive the prices such as;
- Other big news (Geopolitical Tensions, Trade Wars, Terrorism)
- Conflicting News/Data
- Industry News
- Security Specific News
FX and Fixed Income Markets have a tendency to react more quickly to economic News. Equity is dependent of companies and specific industry. Commodity Markets are highly dependent on geopolitical and other events.
In the end, there are so many ways to earn in the Financial Market. The only thing that we need to do is to find where we can excel and master that craft.
Download this PDF file about Fundamental Analysis so you will learn about more about FX economics and how the market moves.. GOOD LUCK!!
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